Less than seven months ago the TTC was talking about closing the Sheppard subway, cancelling more than 20 bus routes and shelving any imminent improvements.

TTC chair Adam Giambrone said at the time the transit commission needed to trim tens of million from its 2008 operating budget.

But on Thursday, Giambrone announced $21 million in service improvements, consisting mostly of added bus service on some of the city's busiest bus routes.

Starting next week, the TTC will have 30 new buses on the street during the morning rush hour — 40 during the afternoon peak — and over the next year the commission is promising 500 new buses and 400 new drivers to help ease Toronto's transit crunch.

"The new, improved service will result in less-crowded vehicles and more convenience to our customers at all times of the week," said Giambrone. "These increases are just the first in many that will be made this year."

For example, Giambrone said, the Finch West route will get seven new buses during the morning peak, and the Dufferin route, which runs all the way from Lake Ontario to Steeles Avenue, will get five new buses.

At a morning news conference Giambrone said the goal is to have approximately 54 people per bus. Right now, he said, many buses in peak hours carry about 65 passengers.

The money to fund the transit changes comes from two sources: in November the transit authority raised ticket prices, and last month council approved increased municipal taxes.

Giambrone said that in the past the TTC hasn't had the drivers, the buses or the money to increase service. But with the additional funding it can now promise more routes, more service and more drivers.